(a)(b)(c) AS(P100)AS(P125)AS(P75) PQPQPQ 125$560125$500125$620 100500100440100560 754407538075500 Suppose the full employment level of real output (Q ) for a hypothetical economy is $500, the price level (P ) initially is 100, and prices and wages are flexible both upward and downward. Refer to the accompanying short-run aggregate supply schedules. If the price level unexpectedly increases from 100 to 125, the level of real output in the short run will
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(a)(b)(c) AS(P100)AS(P125)AS(P75) PQPQPQ 125$560125$500125$620 100500100440100560 754407538075500 Su...
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